NI Valuation

NiSource Inc

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42.150

-0.13(-0.307%)1D

Overview
Forecast
Valuation
Earnings

NI Relative Valuation

NI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NI is overvalued; if below, it's undervalued.

Historical Valuation

NiSource Inc (NI) is now in the Overvalued zone, suggesting that its current forward PE ratio of 21.56 is considered Overvalued compared with the five-year average of 17.94. The fair price of NiSource Inc (NI) is between 31.86 to 37.67 according to relative valuation methord. Compared to the current price of 42.15 USD , NiSource Inc is Overvalued By 11.9%.

Relative Value

Fair Zone

31.86-37.67

Current Price：42.15

11.9%

Overvalued

21.56

Trailing

Forward

13.13

EV/EBITDA

NiSource Inc. (NI) has a current EV/EBITDA of 13.13. The 5-year average EV/EBITDA is 10.99. The thresholds are as follows: Strongly Undervalued below 9.72, Undervalued between 9.72 and 10.36, Fairly Valued between 11.63 and 10.36, Overvalued between 11.63 and 12.27, and Strongly Overvalued above 12.27. The current Forward EV/EBITDA of 13.13 falls within the Strongly Overvalued range.

21.15

EV/EBIT

NiSource Inc. (NI) has a current EV/EBIT of 21.15. The 5-year average EV/EBIT is 17.90. The thresholds are as follows: Strongly Undervalued below 15.66, Undervalued between 15.66 and 16.78, Fairly Valued between 19.02 and 16.78, Overvalued between 19.02 and 20.14, and Strongly Overvalued above 20.14. The current Forward EV/EBIT of 21.15 falls within the Strongly Overvalued range.

3.47

NiSource Inc. (NI) has a current PS of 3.47. The 5-year average PS is 2.07. The thresholds are as follows: Strongly Undervalued below 1.29, Undervalued between 1.29 and 1.68, Fairly Valued between 2.47 and 1.68, Overvalued between 2.47 and 2.86, and Strongly Overvalued above 2.86. The current Forward PS of 3.47 falls within the Strongly Overvalued range.

8.88

P/OCF

NiSource Inc. (NI) has a current P/OCF of 8.88. The 5-year average P/OCF is 6.93. The thresholds are as follows: Strongly Undervalued below 5.05, Undervalued between 5.05 and 5.99, Fairly Valued between 7.86 and 5.99, Overvalued between 7.86 and 8.80, and Strongly Overvalued above 8.80. The current Forward P/OCF of 8.88 falls within the Strongly Overvalued range.

-18.05

P/FCF

NiSource Inc. (NI) has a current P/FCF of -18.05. The 5-year average P/FCF is -15.32. The thresholds are as follows: Strongly Undervalued below -29.78, Undervalued between -29.78 and -22.55, Fairly Valued between -8.09 and -22.55, Overvalued between -8.09 and -0.86, and Strongly Overvalued above -0.86. The current Forward P/FCF of -18.05 falls within the Historic Trend Line -Fairly Valued range.

NiSource Inc (NI) has a current Price-to-Book (P/B) ratio of 2.23. Compared to its 3-year average P/B ratio of 1.87 , the current P/B ratio is approximately 19.21% higher. Relative to its 5-year average P/B ratio of 1.93, the current P/B ratio is about 15.56% higher. NiSource Inc (NI) has a Forward Free Cash Flow (FCF) yield of approximately -3.30%. Compared to its 3-year average FCF yield of -6.24%, the current FCF yield is approximately -47.06% lower. Relative to its 5-year average FCF yield of -6.03% , the current FCF yield is about -45.23% lower.

2.23

P/B

Median3y

1.87

Median5y

1.93

-3.30

FCF Yield

Median3y

-6.24

Median5y

-6.03

Competitors Valuation Multiple

The average P/S ratio for NI's competitors is 2.32, providing a benchmark for relative valuation. NiSource Inc Corp (NI) exhibits a P/S ratio of 3.47, which is 49.65% above the industry average. Given its robust revenue growth of 18.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Cheniere Energy Partners LP

Brookfield Infrastructure Corp

Southwest Gas Holdings Inc

1.08

-5.23%

5.69B

Performance Decomposition

Market capitalization of NI increased by 30.76% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.06 to 22.19.

The secondary factor is the Revenue Growth, contributed 18.28%to the performance.

Overall, the performance of NI in the past 1 year is driven by P/E Change. Which is more unsustainable.

18.28%

1.08B → 1.28B

Revenue Growth

-17.58%

9.50 → 7.83

Margin Expansion

30.06%

17.06 → 22.19

P/E Change

30.76%